Interestingly, Magic (MAGIC) a DeFi app replaced the noxious Pepe (PEPE) as CoinMarketCap’s most trending cryptocurrency on 20 June 2023.
Consequently, many speculators will wonder if decentralized finance (DeFi) is coming back. Interestingly, Magic received $52 million from strategic investors on 30 May 2023. That round included funds from PayPal Ventures. This investment brings Magic’s total raised capital to over $80 million, a press release claims.
Interestingly, Magic became the most cryptocurrency on the same day Bloomberg reported Deutsche Bank AG (NYSE: DB) is seeking a crypto license in the European Union.* Deutsche Bank is the world’s 22nd largest bank with $1.49 trillion in assets in April 2023.
Notably, Deutsche Bank’s asset manager, DWS, and Digital Holdings Ltd are developing a suite of blockchain exchange-traded products (ETPs) and digital assets for European trading.* Thus Big Finance is entering DeFi which drives interest in the sphere.
What is Wallet-as-a-Service?
Wallet-as-a-Service (WaaS) providers such as PayPal (PYPL), Square (SQ), and Magic (MAGIC) connect consumers to the financial system.
For example, PayPal’s wallet allows consumers to pay for retail transactions with money earned online. PayPal also connects E-commerce to bank accounts. Similarly, Magic’s Plug & Play Widget is an out-of-the-box wallet user interface (UI) for login, nonfungible token (NFT) Checkout, and on-ramping fiat currencies.
They claim Magic’s Plug & Play Widget offers over 90% conversion with email, Google One Tap, and third-party wallets. Magic claims they design the widget for all levels of users.
Additionally, they claim Magic’s White-Label Wallets are fully customizable, enterprise-grade, fast, and fully scalable. Moreover, Magic claims its White-Label Wallets offer over 10 authentication methods that plug into existing identity providers.
Magic (MAGIC) Wallet-as-a-Service Solutions
For example, they claim Magic Wallets streamline NFT and crypto onboarding with NFT Checkout & Minting and Fiat On-Ramps via credit cards, debit cards, PayPal, and Instant Bank ACH (Automatic Clearing House) services.
Importantly, the Automated Clearing House (ACH) is the primary system they use for electronics fund transfers (EFT).* In the ACH, they electronically deposit funds in financial institutions and make payments online. Hence Magic’s Wallets can connect NFT and cryptocurrency platforms with the banking system.
They call this end-to-end Web3 Onboarding. It features over 20 authentication methods including email, SMS, Social media, Multi-Factor Authority (MFA), and integration with any identity provider.
Magic’s Key Management Services (KMS) include performance and scale. They claim Magic’s wallet can support over 2000 generations per-second or transactions per second. Magic claims this is over 25 times faster than energy standards.
They claim Magic Wallets can comply with Enterprise Compliance and many standards including SOC2 Type 2, CCPA, GDPR, HIPPA, and ISO. Non-Custodial Wallets with fully exportable keys are also available.
Users can launch a powerful Magic software development kit (SDK). This kit includes on-call VIP support, white glove service, and service-level agreements (SLA). Finally, they claim Magic (MAGIC) wallets are compatible with over 20 blockchains including Bitcoin (BTC), Ethereum (ETH), and Binance (BNB).
How does make Magic (MAGIC) money?
Magic (MAGIC) claims to have onboarded over 20 million users for customers.
Some large consumer brands including Mattel, Macy’s (M), and PayPal are using Magic’s wallets. Other Magic customers including Voice, Magic Eden, Immutable, Moralis, Even, and Kongregate.
Magic makes money by charging users 5¢ per monthly active user (MAU) up to 5,000 MAUs. Then 10¢ per MAU over 5,000 MAUs. This charge covers pass-wordless Web3 onboarding, web, mobile, and gaming SDKs. Scalable key management on over and over 20 blockchains, widgets, and fiat on-ramping. Premium ad-ons start at $199 a month.
Core Features are free with all plans. Custom-volume-based pricing is available for larger customers. Magic Wallet Services come with the custom pricing.
There is a Magic Auth Plus plan for $199 a month, a Magic Widget UI for $999 a month. A Magic Connect Plus widget for $199 a month. VIP support costs $1,999 a month. VIP support means Magic’s techs build and maintain your system for you.
What Value does Magic (MAGIC) offer?
I like Magic (MAGIC) because it is a DeFi platform that makes money the old-fashioned way. To explain, Magic charges customers for products rather than selling tokens.
Mr. Market thinks MAGIC has some value. For example, it was CoinMarketCap’s 146th most traded cryptocurrency on 21 June 2023. Magic had a 82.15¢ Coin Price, a $178.494 million Market Capitalization, a $285.025 million Diluted Market Cap, and a $67.234 million 24-Hour Market Capitalization on 21 June 2023.
There was a $64.850 million Centralized Exchange (CEX) Volume and a $2.385 million Decentralized Exchange (DEX) Volume on 1 June 2023. They base those numbers on a 217.289 million MAGIC Circulating Supply, a 347.714 million Magic Maximum Supply, and a Total Supply of 339.647 million MAGIC.
If you are seeking a protocol or token that can make money from DeFi. I think Magic (MAGIC) is worth examining. You need to investigate MAGIC because it could make money by charging for products and services for which there could be demand.
*https://finbold.com/1-4-trillion-banking-giant-deutsche-bank-files-for-crypto-custody-license/
*https://ceoworld.biz/2023/04/02/biggest-banks-in-the-world-as-measured-by-total-assets-2023/
*https://www.fiscal.treasury.gov/ach/#:~:text=The%20Automated%20Clearing%20House%20(ACH,and%20payments%20are%20made%20online.
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